Russia's TMK halts IPO of U.S. unit due to "adverse market"

Reuters Staff

2 Min Read

MOSCOW (Reuters) - IPSCO Tubulars, U.S. subsidiary of Russian oil and gas pipemaker TMK (TRMK.MM), said on Thursday it had halted an initial public offering (IPO) of its shares due to “adverse market conditions”, IPSCO said on Thursday.

TMK had commenced IPSCO’s IPO on Jan. 29, a day before publication in Washington of the so-called “Russian oligarchs list”. [nL8N1PP443] [nL8N1PP0SH] While the U.S. Treasury stated that the list would not lead automatically to sanctions, it cast a shadow of uncertainty over the 210 prominent figures in Russian business and politics that were featured. The list included Dmitry Pumpyansky, who controls TMK, as well as many other leaders of the Russian metals and mining sector. But the sector has so far steered clear of sanctions first imposed by Western nations on Russia in 2014 over Moscow’s annexation of Crimea from Ukraine.

“While we received significant interest from potential investors, the continued market and economic volatility are not optimal conditions for an initial public offering,” Piotr Galitzine, chairman and chief executive officer of IPSCO, said in a statement. IPSCO did not elaborate further. TMK had said it aimed to raise between $465 million and $535 million from IPSCO’s IPO on the New York Stock Exchange by selling 23,255,813 of its shares in total at a price range of $20-$23 per share.

IPSCO Tubulars is a producer and supplier of seamless and welded oil country tubular goods and other pipe products, with headquarters in Houston, Texas. It has manufacturing facilities in Texas, Pennsylvania, Ohio, Kentucky, Arkansas, Oklahoma, Iowa, Nebraska and in the Canadian province of Alberta.